STUDY OF CUSTOMERS SATISFACTION

TOWARDS HDFC BANK IN SATNA CITY

SUBMITTED TO

AWADHESH PRATAP SINGH UNIVERSITY, REWA (M.P.)

FOR THE AWARD OF

BACHELOR OF BUSINESS ADMINISTRATION
BBA (SEMESTER-VI)
BY
PAWAN YAMGAR
UNDER GUIDANCE OF

PROF. SANKALP SHUKLA

VINDHYA INSTITUTE OF MANAGEMENT &

RESEARCH,
SATNA (M.P.)
2016- 2017
1
 VINDHYA INSTITUTE OF MANAGEMENT & RESEARCH,
SATNA (M.P.)

GUIDES CERTIFICATE
This is to certify that MR. PAWAN has satisfactorily completed the Summer Training
Project Report on STUDY OF CUSTOMERS SATISFACTION TOWARDS HDFC BANK
under my guidance for the partial fulfillment of BBA (Semester-VI) submitted to Awadhesh
Pratap Singh University, Rewa during the academic year 2016-2017.
To best of my knowledge and belief the matter presented by her is original work and
not copied from any source. Also this report has not been submitted earlier for the award of
any Degree of Awadhesh Pratap Singh University, Rewa.

Place: Satna PROF. SANKALP SHUKLA

Date: / / 2016 (Project Guide)

2
 VINDHYA INSTITUTE OF MANAGEMENT & RESEARCH,
SATNA (M.P.)

DECLARATION

I undersigned, hereby declare that this project report entitled STUDY OF CUSTOMERS SATISFACTION
TOWARDS HDFC BANK prescribed by AWADHESH PRATAP SINGH UNIVERSITY, REWA during the academic year
2016-2017 under the guidance of PROF. SANKALP SHUKLA my original work.
The matter presented in this report has not been copied from any source. I understand that any such
copying is liable to be punishable in any way the university authorities deem to be fit. Also this report has not
been submitted earlier for the award of any Degree or Diploma of Awadhesh Pratap Singh University, Rewa or
any other University.
This work humbly submitted to Awadhesh Pratap Singh University for the partial fulfillment of

Bachelor of Business Administration (Sem-VI).

PLACE: SATNA PAWAN YAMGAR

DATE: / / 2017

3
 VINDHYA INSTITUTE OF MANAGEMENT & RESEARCH,
SATNA (M.P.)

ACKNOWLEDGEMENT

Whenever we are standing on most difficult step of the dream of our life, we often remind about The Great God
for His blessings & kind help and he always helps us in tracking off the problems by some means in our
lifetime. I feel great pleasure to present this project entitled STUDY OF CUSTOMERS SATISFACTION
TOWARDS HDFC BANK
I am grateful to those people who help me a lot in preparation of this project report. It is their support
and blessings, which has brought me to write this project report. I have a deep sense of gratitude in my heart
for them.
I am very thankful to my project guide Prof. SANKALP SHUKLA for his whole-hearted support and
affectionate encouragement without which my successful project would not have been possible.
Finally, I am very grateful to Mighty God and inspiring parents whose loving & caring support
contributed a major share in completion of my task.

PAWAN YAMGAR

4
 ABSTRACT

The present study was undertaken to know the preference of the customers towards HDFC Bank.
The main problem of the customers is they are not well aware of the services provided by their
banks. The study also force on the customer perception that how the banking service can be
improved. In our study we have used both primary sources of data as well as secondary sources of
data. During project we came to know that both the banks are highly preferred by the customers
but their preference is different up to some extent towards the service of these banks.

5
 TABLE OF CONTENTS

CHAPTER TOPICS COVERED PAGE NO.

CHAPTER 1 COMPANY PROFILE 8-28

CHAPTER 2 SWOT ANALYSIS 29

CHAPTER 3 OBJECTIVE OF THE STUDY 30-31

CHAPTER 4 Scope of the study 32-33

CHAPTER 5 CORPORATE OVERVIEW 34-37

CHAPTER 6 Research methodology 38-40

CHAPTER 7 Findings 41

CHAPTER 8 Data Analysis 42-50

CHAPTER 9 Suggestion & Recommendation 51-52

CHAPTER 10 Questionnaire 53-55

CHAPTER 11 BIBLIOGRAPHY 56-58

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Chapter 1

7
 BANKING INDUSTRY

Introduction to Indian Banking System

History of Banking in India
Without a sound and effective banking system in India it cannot have a healthy economy.
The banking system of India should not only be hassle free but it should be able to meet
new challenges posed by the technology and any other external and internal factors.
For the past three decades India's banking system has several outstanding achievements
to its credit. The most striking is its extensive reach. It is no longer confined to only
metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even
to the remote corners of the country. This is one of the main reasons of India's growth
process.
The government's regular policy for Indian bank since 1969 has paid rich dividends with
the nationalization of 14 major private banks of India
Not long ago, an account holder had to wait for hours at the bank counters for getting a
draft or for withdrawing his own money. Today, he has a choice. Gone are days when the
most efficient bank transferred money from one branch to other in two days. Now it is
simple as instant messaging or dials a pizza. Money has become the order of the day. The
first bank in India, though conservative, was established in 1786. From 1786 till today,
the journey of Indian Banking System can be segregated into three distinct phases. They
are as mentioned below:
Early phase from 1786 to 1969 of Indian Banks

Nationalization of Indian Banks and up to 1991 prior to Indian banking sector

Reforms.
New phase of Indian Banking System with the advent of Indian Financial &
Banking Sector Reforms after 1991.

8
To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II
and Phase III.

Phase I
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan
and Bengal Bank. The East India Company established HDFC Bank(1809), Bank of
Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency
Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was
established which started as private shareholders banks, mostly Europeans shareholders.
In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab
National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and
1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank,
and Bank of Mysore were set up. Reserve Bank of India came in 1935.
During the first phase the growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To
streamline the functioning and activities of commercial banks, the Government of India
came up with The Banking Companies Act, 1949 which was later changed to Banking
Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of
India was vested with extensive powers for the supervision of banking in India as the
Central Banking Authority.
During those days public has lesser confidence in the banks. As an aftermath deposit
mobilization was slow. Abreast of it the savings bank facility provided by the Postal
department was comparatively safer. Moreover, funds were largely given to traders.

Phase II
Government took major steps in this Indian Banking Sector Reform after independence.
In 1955, it nationalized Imperial Bank of India with extensive banking facilities on a
large scale especially in rural and semi-urban areas. It formed State Bank of India to act
as the principal agent of RBI and to handle banking transactions of the Union and State
Governments all over the country.
Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th

9
July, 1969, major process of nationalization was carried out. It was the effort of the
then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the
country were nationalized.
Second phase of nationalization Indian Banking Sector Reform was carried out in
1980 with seven more banks. This step brought 80% of the banking segment in India
under Government ownership.
The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:
1949: Enactment of Banking Regulation Act.

1955: Nationalization of State Bank of India.

1959: Nationalization of HDFC BANKsubsidiaries.

1961: Insurance cover extended to deposits.

1969: Nationalization of 14 major banks.

1971: Creation of credit guarantee corporation.

1975: Creation of regional rural banks.

1980: Nationalization of seven banks with deposits over 200 crores.

After the nationalization of banks, the branches of the public sector bank India rose
to approximately 800% in deposits and advances took a huge jump by 11,000%.
Banking in the sunshine of Government ownership gave the public implicit faith and
immense confidence about the sustainability of these institutions.

Phase III
This phase has introduced many more products and facilities in the banking sector in
its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee
was set up by his name which worked for the liberalizations of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are being put
to give a satisfactory service to customers. Phone banking and net banking is
introduced. The entire system became more convenient and swift. Time is given more
importance than money.
The financial system of India has shown a great deal of resilience. It is sheltered from any
crisis triggered by any external macroeconomics shock as other East Asian Countries

10
suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high,
the capital account is not yet fully convertible, and banks and their customers have
limited foreign exchange exposure

Banking system in India

The Indian banking can be broadly categorized into nationalized (government owned),
private banks and specialized banking institutions. The Reserve Bank of India acts a
centralized body monitoring any discrepancies and shortcoming in the system. Since the
nationalization of banks in 1969, the public sector banks or the nationalized banks have
acquired a place of prominence and has since then seen tremendous progress. The need to
become highly customer focused has forced the slow-moving public sector banks to
adopt a fast track approach. The unleashing of products and services through the net has
galvanized players at all levels of the banking and financial institutions market grid to
look anew at their existing portfolio offering. Conservative banking practices allowed
Indian banks to be insulated partially from the Asian currency crisis.Indian banks are now
quoting al higher valuation when compared to banks in other Asian countries (viz. Hong
Kong, Singapore, Philippines etc.) that have major problems linked to huge Non
Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed
in approach and armed with efficient branch networks focus primarily on the high
revenue niche retail segments.

The Indian banking has finally worked up to the competitive dynamics of the new
Indian market and is addressing the relevant issues to take on the multifarious challenges
of globalization. Banks that employ IT solutions are perceived to be futuristic and
proactive players capable of meeting the multifarious requirements of the large customers
base. Private banks have been fast on the uptake and are reorienting their strategies using
the internet as a medium The Internet has emerged as the new and challenging frontier of
marketing with the conventional physical world tenets being just as applicable like in any
other marketing medium.

The Indian banking has come from a long way from being a sleepy business institution to
a highly proactive and dynamic entity. This transformation has been largely brought

11
about by the large dose of liberalization and economic reforms that allowed banks to explore
new business opportunities rather than generating revenues from conventional streams (i.e.
borrowing and lending). The banking in India is highly fragmented with 30 banking units
contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks (banks
owned by the government) continue to be the major lenders in the economy due to their sheer
size and penetrative networks which assures them high deposit mobilization. The Indian
banking can be broadly categorized into nationalized, private banks and specialized banking
institutions.

The Reserve Bank of India act as a centralized body monitoring any discrepancies and
shortcoming in the system. It is the foremost monitoring body in the Indian financial sector.
The nationalized banks (i.e. government-owned banks) continue to dominate the Indian
banking arena. Industry estimates indicate that out of 274 commercial banks operating in India,
223 banks are in the public sector and 51 are in the private sector. The private sector bank grid
also includes 24 foreign banks that have started their operations here. Under the ambit of the
nationalized banks come the specialized banking institutions. These co-operatives, rural banks
focus on areas of agriculture, rural development etc., unlike commercial banks these co-
operative banks do not lend on the basis of a prime lending rate. They also have various tax
sops because of their holding pattern and lending structure and hence have lower overheads.
This enables them to give a marginally higher percentage on savings deposits. Many of these
cooperative banks diversified into specialized areas (catering to the vast retail audience) like
car finance, housing loans, truck finance etc. in order to keep pace with their public sector and
private counterparts, the co-operative banks too have invested heavily in information
technology to offer high-end computerized banking services to its clients.

12
 TYPES OF BANKS
Central Bank
The Reserve Bank of India is the central Bank that is fully owned by the Government. It is
governed by a central board (headed by a Governor) appointed by the Central Government. It
issues guidelines for the functioning of all banks operating within the country.
Co-operative Sector
The co-operative sector is very much useful for rural people. The co-operative banking sector
is divided into the following categories.

a. State co-operative Banks

b. Central co-operative banks

c. Primary Agriculture Credit Societies

Development Banks/Financial Institutions

IFCI

IDBI

ICICI

IIBI

SCICI Ltd.

NABARD

Export-Import Bank of India

National Housing Bank

Small Industries Development Bank of India

North Eastern Development Finance Corporation

PRIVATE SECTOR BANKS

a. Old generation private banks

b. New generation private banks

c. Foreign banks operating in India

d. Scheduled co-operative banks

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e. Non-scheduled banks

Private Sector Banks

1. HDFC Bank

2. ICICI Bank

3. Federal Bank

4. ING Vysya Bank

5. Axis Bank (formerly UTI Bank)

6. Yes Bank

7. Bank of Rajasthan

8. Bharat Overseas Bank

9. Catholic Syrian Bank

10. Centurion Bank of Punjab

11. City Union Bank

12. Development Credit Bank

13. Dhanalakshmi Bank

14. Ganesh Bank of Kurundwad

15. IndusInd Bank etc.

14
 After nationalization of 14 commercial banks in 1969, no new private banks were
licensed by RBI in the country, though there was no legal bank on entry of private sector
banks. The Narsimha committee report of 1991, has envisaged a larger role for private
sector banks. In recognition of need to introduce greater competition with a view to
achieving higher productivity and efficiency of banking system. RBI issued few
guidelines in Jan 1993 for entry of private sector banks. It prescribed of minimum paid up
capital of Rs.100 crores for new bank and shares to be listed at stock exchanges new bank
after being granted license under Banking Regulation Act, shall be registered as Public
ltd. Company under companies Act 1956. Subsequently nine new commercial banks have
been granted license to start banking operations. The new private sector banks have been
very aggressive in business expansion and are also reporting higher profit levels taking
advantage of technical and skilled manpower. In certain areas, these banks have been out
crossed the other group of banks including foreign banks.

GUIDELINES FOR PRIVATE SECTOR BANKS

The RBI issued guidelines regarding the formation and functioning of private sector
banks in January 1993. These guidelines are as follows:

The banks shall be governed by the provisions of The Reserve Bank of India Act,
1934 The Banking Regulations Act, and 1949 other relevant statuaries.
Private sector banks are required to be registered as public limited companies in
India.
The authority to grant a license lies with the RBI.
The shares of banks are required to be listed on stock exchanges.

Preference will be given to those banks whose headquarters are proposed to be

located in a center that does not have headquarters of any other bank.
Maximum voting rights of an individual shareholder would be limited to 1% of
total voting rights.
The new bank would not be allowed to have as its director any person who is
already a director in a banking company.
The bank will be subject to prudential norms in respect of banking operations,
accounting policies and other policies, as laid down by RBI. The bank will be
required to adhere to the following: Minimum paid up share capital of Rs. 1 bln.

15
 Promoters' contribution as determined by the RBI Capital adequacy of 8% of the
risk weighted assets Single borrower and group borrower exposure limits in force
Priority sector lending Export credit Loan policy within overall policy guidelines
laid down by the RBI.
The banks will be free to open branches anywhere once they satisfy the capital
adequacy and prudential accounting norms.
The banks would not be allowed to have investments in subsidiaries, mutual funds
and portfolio investments in other companies in excess of 20% of the banks' own
paid up capital and reserves.
The banks would be required to use modern infrastructural facilities in office
equipment, computer, telecommunications etc.

HDFC Bank:
HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian
Bank". They realized that only a single-minded focus on product quality and service
excellence would help them to get there.

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network
of over 495 branches spread over 218 cities across India. All branches are linked on an
online real-time basis. Customers in over 120 locations are also serviced through
Telephone Banking. The Banks expansion plans take into account the need to have a
presence in all major industrial and commercial centres where its corporate customers are
located as well as the need to build a strong retail customer base for both deposits and
loan products. Being a clearing/settlement bank to various leading stock exchanges, the
Bank has branches in the centres where the NSE/BSE have a strong and active member

16
base. The authorized capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up
capital is Rs.309.9 crore (Rs.3.09 billion). The HDFC Group holds 22.2% of the banks
equity and about 19.5% of the equity is held by the ADS Depository. The Bank has made
substantial efforts and investments in acquiring the best technology available
internationally, to build the infrastructure for a world class bank.
Establishment
The establishment of the HDFC Bank marked the advent of limited liability, joint-stock
banking in India. So was the associated innovation in banking, viz. the decision to allow
the HDFC Bankto issue notes, which would be accepted for payment of public revenues
within a restricted geographical area. This right of note issue was very valuable not only
for the HDFC Bankbut also its two siblings, the Banks of Bombay and Madras. It meant
an accretion to the capital of the banks, a capital on which the proprietors did not have to
pay any interest. The concept of deposit banking was also an innovation because the
practice of accepting money for safekeeping (and in some cases,even investment on
behalf of the clients) by the indigenous bankers had not spread as a general habit in most
parts of India. But, for a long time, and especially upto the time that the three presidency
banks had a right of note issue, bank notes and government balances made up the bulk of
the investible resources of the banks.

17
HDFC Bank, one amongst the firsts of the new generation, tech-savvy commercial banks
of India, was set up in august 1995 after the Reserve Bank of India allowed setting up of
Banks in the private sector. The Bank was promoted by the Housing Development
Finance Corporation Limited, a premier housing finance company (set up in 1977) of
India. Net Profit for the year ended March 31, 2006 was up 30.8% to Rs 870.8 crores.

Branch network
Currently (2007), HDFC Bank has 583 branches located in 263 cities of India, and all
branches of the bank are linked on an online real-time basis. The bank offers many
innovative products & services to individuals, corporates, trusts, governnments,
partnerships, financial institutions, mutual funds, insurance companies. The bank also has
over 1471 ATMs. In the next few month the number of branches and ATMs should go up
substantially.

Recognition
Over a decade of its operations, HDFC Bank has been recognized, rated and awarded by
a number of organizations, which includes: Best Domestic Bank in India in The Asset
Triple A Country Awards 2005, 2004 and 2003. Company of the Year Award in The
Economic Times Awards for Corporate Excellence 2004-05.
Asiamoney's Awards for Best Domestic Commercial Bank as well as Best Cash
Management Bank - India in 2005. The Asian Banker Excellence in Retail Banking Risk
Management Award in India for 2004. Finance Asia Best Bank - India in 2005, "Best
Domestic Commercial Bank India in 1999, 2000 and 2001 respectively and Best
Local Bank India in 2002 and 2003.

18
 Business Today Best Bank in India in 2003 and 2004. Best Overall
Local/Domestic Bank India in the Corporate Cash Management Poll conducted by
Asiamoney magazine. Selected by Business World as "one of India's Most Respected
Companies" as part of The Business World Most Respected Company Awards 2004. In
2004, Forbes Global named HDFC Bank in its listing of Best under a Billion, 100 Best
Smaller Size Enterprises in Asia/Pacific and Europe. In 2004, HDFC Bank won the

19
award for Operational Excellence in Retail Financial Services -India as part of the
Asian Banker Awards 2003. In 2003, Forbes Global named HDFC Bank in its ranking of
Best Under a Billion, 200 Best Small Companies for 2003. The Financial Express
named HDFC Bank the Best New Private Sector Bank 2003 in the FE-Ernst & Young
Best Banks Survey 2003.
Outlook Money named HDFC Bank the Best Bank in the Private Sector for the year
2003. NASSCOM and economictimes.com have named HDFC Bank the Best IT User in
Banking at the IT Users Awards 2003.
Euromoney magazine gave HDFC Bank the award for "Best Bank India in 1999,
Best Domestic Bank in India in 2000, and Best Bank in India in 2001 and 2002.
Asiamoney magazine has named us Best Commercial Bank in India 2002 For its use of
information technology, HDFC Bank has been recognized as a Computerworld Honors
Laureate and awarded the 21st Century Achievement Award in 2002 for Finance,
Insurance & Real Estate category by Computerworld, Inc., USA. Its technology initiative
has been included as a case study in their online global archives. Business India named
HDFC Bank Indias Best Bank in 2000. In 2000, Forbes Global named HDFC Bank in
its list of The 300 Best Small Companies in the world and as one of the 20 for 2001
best small companies in the world.
Profile
The Housing Development Finance Corporation Limited (HDFC) was amongst
the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set
up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking
Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank
Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations
as a Scheduled Commercial Bank in January 1995.
Business focus
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to
build sound customer franchises across distinct businesses so as to be the preferred
provider of banking services for target retail and wholesale customer segments, and to
achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank
is committed to maintain the highest level of ethical standards, professional integrity,

20
corporate governance and regulatory compliance. HDFC Bank's business philosophy is
based on four core values Operational Excellence, Customer Focus, Product Leadership
and People
Corporate Details
The Housing Development Finance Corporation Limited ( HDFC ) was amongst the
first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a
bank in the private sector, as part of the RBI's liberalization of the Indian Banking
Industry in 1994. Incorporated in August 1994 as HDFC Bank Limited , as of December
31, 2006, the bank had a India network of 684 branches in 316 cities in India and over
1663 ATM's.
Activities
HDFC Bank mainly provides three kinds of banking services:
Personal Banking

NRI Banking

Wholesale Banking
The following are the products and services provided by the HDFC bank
HDFC Bank provides loans like Personal Loans , Home Loans , Educational
Loans , Two Wheeler Loans , New car Loans, Used Car Loans, Overdraft Against
Car, Express Loans, etc.
HDFC Bank provides Credit, Debit and Prepaid Cards to help you meet your
financial objectives.
HDFC Bank provides facilities like Mutual Funds , Insurance , General & Health
Insurance, Bonds , Financial Planning, Knowledge Center, Equities &
Derivatives, Mudra Gold bar.
If you need to deal in foreign currency and keep tabs on exchange rates every now and
then, transfer funds to India, make payments etc., HDFC Bank has a range of products
and services that you can choose from to transact smoothly, efficiently and in a timely
manner.
With HDFC Bank 's payment services, you can bid goodbye to queues and paper work.
HDFC 's range of payment options make it easy to pay for a variety of utilities and
services.

21
HDFC Bank has designed two programs to make banking easier for the customers and
they are
HDFC Bank Preferred Programme

HDFC Bank Classic Programme.

HDFC Bank offers Private Banking services to high net worth individuals and
institutions.
HDFC Bank offers you quick, economical and convenient options to remit and transfer
funds to India.
Corporate Banking reflects HDFC Bank 's strengths in providing our corporate clients in
India, a wide array of commercial, transactional and electronic banking products. HDFC
Bank acts as an active medium between the government and the customers by means of
various services.
Performance
Profit & Loss Account : Year ended March 31, 2007
For the year ended March 31, 2007, the Bank earned total income of Rs.8,405.3 crores as
against Rs.5,599.3 crores in the corresponding period of the previous year. Net revenues
(net interest income plus other income) for the year ended March 31, 2007 were
Rs.5,225.8 crores, up 42.4% over Rs.3,669.8 crores for the year ended March 31, 2006.
Net Profit for year ended March 31, 2007 was Rs.1,141.5 crores, up 31.1%, over the
corresponding year ended March 31, 2006.
Organization
Mr. Aditya Puri is the Managing Director of HDFC Bank .
Contact Details
Registered address: HDFC Bank House ,
Senapati Bapat Marg, Lower Parel,
Mumbai - 400 013,
India.

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HDFC BANK AND CENTURION BANK OF PUNJAB MERGER
Merger of Centurion Bank of Punjab with HDFC Bank at share swap ratio of 1:29. The
Scheme of Amalgamation envisages a share exchange ratio of one share of HDFC Bank
for twenty nine shares of Centurion Bank of Punjab.

The combined entity would have a nationwide network of 1,148 branches (the largest
amongst private sector Banks) a strong deposit base of around Rs. 1,200 billion and net
advances of around Rs. 850 billion. The balance sheet size of the combined entity would
be over Rs. 1,500 billion.

The share exchange ratio approved by the respective Boards was based on the
recommendations made by M/s Dalal & Shah, Chartered Accountants, and Ernst &
Young Private Ltd. who acted as independent joint valuers to the transaction.

The draft Scheme of Amalgamation, the due diligence report and any other matters as
required will be considered by the Board of HDFC Bank in their meeting scheduled on
February 28, 2008. The Board of CBOP will meet on the same day in order to consider
the draft Scheme of Amalgamation and any other matters as required.

HDFC Banks Board noted that in the event of the merger of Centurion Bank of Punjab
with HDFC Bank being approved at its meeting on February 28, 2008, it would consider
making a preferential offer to its promoter Housing Development Finance Corporation
(HDFC), to enable HDFC to maintain its percentage shareholding in the merged entity.
HDFC Banks Board also noted that Mr. Rana Talwar has been offered a seat on the
Board as non executive director and Mr. Shailendra Bhandari will be invited to join the
Board as Executive Director.

Commenting on the proposed merger, Mr. Deepak Parekh, Chairman, HDFC said, We
were amongst the first to get a banking license, the first to do a merger in the private
sector with Times Bank in 1999, and now if this deal happens, it would be the largest
merger in the private sector banking space in India. HDFC Bank was looking for an
appropriate merger opportunity that would add scale, geography and experienced staff to
its franchise. This opportunity arose and we thought it is an attractive route to supplement

30

23
HDFC Banks organic growth. We believe that Centurion Bank of Punjab would be the
right fit in terms of culture, strategic intent and approach to business.

Distribution network
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable
network of over 684 branches spread over 316 cities across India. All branches are linked
on an online real-time basis. Customers in over 120 locations are also serviced through
Telephone Banking. The Bank's expansion plans take into account the need to have a
presence in all major industrial and commercial centres where its corporate customers are
located as well as the need to build a strong retail customer base for both deposits and loan
products. Being a clearing/settlement bank to various leading stock exchanges, the Bank
has branches in the centres where the NSE/BSE have a strong and active member base.
The Bank also has a network of about over 1,740 networked ATMs across these cities.
Moreover, HDFC Bank's ATM network can be accessed by all domestic and international
Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express
Credit/Charge cardholders.
HDFC Bank operates in a highly automated environment in terms of information
technology and communication systems. All the bank's branches have online connectivity,
which enables the bank to offer speedy funds transfer facilities to its customers. Multi-
branch access is also provided to retail customers through the branch network and
Automated Teller Machines. The Bank has made substantial efforts and investments in
acquiring the best technology available internationally, to build the infrastructure for a
world class bank. In terms of software, the Corporate Banking business is supported by
Flexcube, while the Retail Banking business by Finware, both from i-flex Solutions Ltd.
The systems are open, scaleable and web-enabled.
The Bank has prioritized its engagement in technology and the internet as one of its key
goals and has already made significant progress in web-enabling its core businesses. In
each of its businesses, the Bank has succeeded in leveraging its market position, expertise
and technology to create a competitive advantage and build market share.

24
AWARDS

2008
CNN-IBN
'Indian of the Year (Business)'

Nasscom IT User Award 2008

'Best IT Adoption in the Banking Sector'

Business India
'Best Bank 2008'

Forbes Asia
Fab 50 companies in Asia Pacific

Asian Banker Excellence in Retail Financial Services

Best Retail Bank 2008

Asiamoney
Best local Cash Management Bank Award voted by Corporates

Microsoft & Indian Express Group

Security Strategist Award 2008

World Trade Center Award of honour

For outstanding contribution to international trade services.

Business Today-Monitor Group survey

One of India's "Most Innovative Companies"

Financial Express-Ernst & Young Award

Best Bank Award in the Private Sector category

Global HR Excellence Awards - Asia Pacific HRM

Congress:

25
'Employer Brand of the Year 2007 -2008' Award - First Runner up, & many more

Business Today
'Best Bank' Award

2007
Dun & Bradstreet American Express Corporate Best Bank Award 2007
'Corporate Best Bank' Award

The Bombay Stock Exchange and Nasscom Foundation's Business for Social Responsibility Awards
2007
'Best Corporate Social Responsibility Practice' Award

Outlook Money & NDTV Profit

Best Bank Award in the Private sector category.

The Asian Banker Excellence in Retail Financial Services Awards

Best Retail Bank in India

Asian Banker
Our Managing Director Aditya Puri wins the Leadership Achievement Award for India

26
PRODUCTS AND SERVICES PROVIDED BY HDFC
BANK

Savings Accounts
Regular Savings Account Savings plus

Account

Savings ax Account No Frills Account

Retail Trust Account Salary Accounts
Payroll Classic Regular Premium
Defense Salary Account Kid's Advantage Account
Pension Saving Bank Account Family Savings Group

Current Accounts
Plus Current Account Trade Current Account
Premium Current Account Regular Current Account
Reimbursement Current Account RFC - Domestic Account

Fixed Deposits
Regular Fixed Deposit Super Saver Account Sweep-in Account

Loans
Personal Loans Home Loans
Two Wheeler Loans New Car Loans
Used Car Loans

27
Overdraft against Car Express Loans
Gold Loan
Educational Loan
Loan Against Securities

Cards
Credit Cards
Silver Credit Card Gold
Credit Card
Platinum Plus Credit Card

Debit Cards
Easy Shop International Debit Card Easy
Shop Gold Debit Card
Easy Shop International Business Debit Card

Access Your Bank

Net Banking
Mobile Banking ATM
Phone Banking

28
SWOT analysis

STRENGTH
1. Right strategy for the right products
2. superior customer service vs competitiors
3. great brand image
4. high degree of customer satisfaction

5. good place to work

6. lower response time with efficient & effective service

7. dedicated work force making a long term career in the field

WEAKNESSES
1. Customer service staff needs training

OPPORTUNITIES
1) Profits margins will be good
2) Could extent to overseas broadly.
3) Could seek better customer deals

THREATS
Legislation could impact
great risk involved
very high competition prevailing in the industry
Lack of infrastructure in rural areas could constrain investment.

29
OBJECTIVES OF THE STUDY

30
1. To know preference of customers regarding public sector banks and private
sector banks.
2. to analyze which facility influences the customer most while selecting Bank,
3. to compare the various services provided by these banks and
4. to make aware about the various services provided by the bank.

31
SCOPE OF THE PROJECT

32
Personal visit to the branches of HDFC BANK was done to collect the first hand
information. Study is done with the special reference to the area, SATNA City.

33
LITERATURE REVIEW

34
1. Denise K. Conroy in his study titled (Customer satisfaction measures in the public
sector: what do they tell us?) attempts to devise customer satisfaction measures, according
to him there are a number of factors which can affect the interpretation of results - the
nature of the customer, service provision, service quality and, for the public Sector, the
extent to which consumer sovereignty exists. Resources may be better directed towards
setting and maintaining high levels of standard of service. This study addresses the
difficulties and highlights the complex nature of a customer or service beneficiary who
can be, at the same time, a taxpayer, voter, recipient of financial benefits, with
expectations of the public sector and its delivery agent, yet cannot choose another
provider.

2.Harry Nowka, Southwestern Oklahoma State University,

Nancy Buddy, Southwestern Oklahoma State University,
Robert Reeder, Southwestern Oklahoma State University and
Daniel Hart, Southwestern Oklahoma State University in their study titled (Customer
responses: A COMPARATIVE STUDY) wants to determine various variables which
influence customers of a bar and grill. This comparative analysis includes customer
responses with comparisons made to the major competitor's customer responses, student
customer responses, and responses of a panel of non customers assembled to assess potential
customer responses. This study indicates that location can be a significant deterrent to
expansion of the customer base. The personality of the owner can have a positive impact on
customer flow. Analysis of spending patterns indicates that food and pool were underutilized.
The male/female ratio was a determinate of customer flow.

3. Dawn Iacobucci, Amy Ostrom, Kent Grayson in their study titled(Distinguishing

Service Quality and Customer Satisfaction: The Voice of the Consumer) presents
two studies that rely on divergent methodologies to examine whether or not quality and
satisfaction have distinct antecedent causes, consequential effects, or both (i.e., whether
or not they should be considered a single construct, or distinct, separable constructs).
They focus on consumers understanding and use of the words quality and satisfaction; in
both studies, respondents report whether or not they think quality and satisfaction differ,

35
and if so, on what dimensions or under what circumstances. In the first study, they use
the qualitative critical incident technique to elicit service attributes that are salient to
respondents when prompted to consider quality and satisfaction as distinct. they code the
responses to these open-ended survey questions to examine whether quality can be teased
apart from satisfaction, from the respondents (consumers) perspective. In the second
study, to triangulate on the qualitative data, they experimentally manipulated a number of
service attributes drawn from both the first study and from the literature to see whether
or not they have differential impacts on judgments of quality and satisfaction. They did
not presuppose that quality and satisfaction differrather, they asked respondents to
make a judgment either of quality or of satisfaction, defining the term as they saw fit.

4. Antreas D. Athanassopoulos in his study titled (Customer Satisfaction Cues To

Support Market Segmentation and Explain Switching Behavior) examined the
customer satisfaction cues in retail banking services in Greece. The study proposes an
instrument of customer satisfaction that contains service quality and such other attributes
as price, convenience, and innovation. The proposed framework of customer satisfaction
was verified empirically yielding four distinct facets for business customers and five for
individual customers. The performance implications of the customer satisfaction
instrument are also explored. What is shown is that customer segments, in fact, yield
statistically different satisfaction scores, which verifies the managerial value of customer
segmentation practices. Finally, the facets of customer satisfaction as explanatory cues
for the switching behavior of individual and business customers were tested successfully.

5. Rengasamy Elango and Vijaya Kumar Gudep in their study titled(A Comparative
Study on the Service Quality and Customer Satisfaction among Private, Public and
Foreign Banks) focuses on the service quality and customer satisfaction among the
private, public and foreign banks in India. An analysis is carried out to examine the level
of awareness among customers and to identify the best sector which provides qualitative
customer service. This becomes relevant in the context of recommendations of various
committees constituted by the Government of India and the RBI, from time to time, to

36
suggest measures to improve customer service systems of the public sector commercial banks of India.
A well-structured questionnaire is used to collect the views of respondents across the three banking
sectors. The survey instrument includes various dimensions, pertaining to the quality of customer
services in terms of banking personnel, convenient working hours, Web-based services, error free
value-added services and efficient grievance redressal mechanism etc. Apart from the basic statistical
tools such as measures of central tendency, The authors also use `factor analysis' and the `One-way
Anova' classification. The idea behind this is to extract the relevant factors and analyze whether there
is any significant difference with respect to service quality within the three banking sectors. The
results indicate that the level of awareness among the customers improved significantly during the
study period. It is interesting to note that the results are consistent with the previous studies conducted
on customer service aspects, and it has been observed that the foreign and the new generation private
sector banks are serving the customers better. This has larger implications on the public sector
commercial banks in India with respect to customer service delivery aspects. It is high time the public
sector commercial banks made efforts to revamp their approach towards customers, so as to perform
better and derive competitive advantage in the long run.

37
RESEARCH METHODOLOGY

38
It describes the data collection method, the sampling plan, the tools of investigation, planning and
testing of questionnaire and the limitations of the study. The study requires the data to be collected
from two different sources i.e. the primary source and the secondary source. The primary data is
collected with the help of structured questioners which is being modified & reliable and the secondary
data through the various journals, newspapers and websites.

Data Source:
(a) Primary Data: Primary data was collected by means of questionnaires

(b) Secondary data: Secondary data collected by referring to various books,

newspapers, magazines, journals and internet (details in bibliography)

Research Design
Present study enquired and brought forward the results concerning the set
objectives specified before which relates to description of the state of affairs as a
result it clearly states that it was a DESCRIPTIVE STUDY, which included fact
finding enquiries of different kinds.
Sampling Design
Universe: - The universe was finite in this study, since the population of SATNA City is certain and
can be counted.
Sampling Unit: - The sampling unit is an individual (non-staff member) who is having account in
HDFC BANK.
Sample Size: - The sample size for the study was 70 individuals, non-staff members of HDFC BANK
Sampling Procedure: - Due to the time and resource constraints the convenience sampling technique
was used. The individuals were selected according to convenience to fill the questionnaires.

Research Instrument used: Questionnaires.

LIMITATIONS
Though every effort was made to make the report authentic in every sense, yet there are few factors
which might have their influence on the final report.
1. There was time shortage. Time provided to us was very short which make it difficult for us to
conduct survey at wider range.
2. Sometimes respondents did not respond well to all the questions in the questionnaire.
3. Low cooperation from the bank executives make to struggle more, due to which
We were forced to restrict our sample size to 80.

39
4. Some biasness might have occurred in analysis. Because of lack of expert knowledge.
5. Best efforts were made to incorporate all-important variables in study, yet chances of some of
variables not appearing in study are not ruled out.
6. Frequent developments in this sector can be a major reason of limitation in the study
7. Biasness in views of respondents cant be ruled out
8. Resistance to change sometimes affects view of respondents.

40
FINDINGS

41
DATA ANALYSIS

HDFC BANK

Sample Size 35

42
1. AGE GROUP AND DISTRIBUTION OF MALE AND FEMALE CUSTOMERS
DEALING WITH HDFC

(a) Age Group

AGE NO. OF PERSONS
LESS THAN 25 4
25-35 12
35-45 7
45-55 9
55 & ABOVE 3

(b) Gender
NO. OF
GENDER PERSONS
MALE 27

FEMALE 8

43
 OCCUPATION OF THE CUSTOMERS OF HDFC
NO. OF
OCCUPATION PERSONS
SERVICE 12
BUSINESMAN 13
PROFESSIONAL 5
STUDENT 3
HOUSEWIFE 2

44
 3. DISTRIBUTION OF THE INCOME OF THE CUSTOMERS OF
HDFC

INCOME NO. OF PERSONS

NIL 2
LESS THAN 50000 4
50000-150000 9
150000-300000 8
300000-500000 9
500000-ABOVE 3

4. MOST IMPORTANT REASON FOR CHOOSING

HDFC
FACTORS NO. OF PERSONS
I have a traditional bank account with the same bank 3
The brand name of the bank 6
The excellent service offered by this bank 12
ATM service 5
Net banking facility 2
Location advantage 7

45
5. ACCOUNT FACILITY AVAILING IN THE
HDFC

FACILITY NO. OF PERSONS

Savings account 21
Current account 7
Fixed deposit 6
NRI account 1

46
 6. NO. OF YEARS, CUSTOMERS DEALING WITH
HDFC
NO. OF
YEARS PERSONS
Less than 1 year 7
1 to 2 years 9
3 to 5 years 13
More than 5 years 6

7. REASON FOR TYPICALLY VISITING THE BANK

BRANCH

NO. OF
REASONS PERSONS
To make a deposit 17
To get advice for investment
options 3
To inquire about a balance 5
To withdraw cash 10

47
 8. HOW WOULD YOU RATE THE FOLLOWING BANKING SERVICE
QUALITY ON SCALE OF 1-5 PROVIDED BY BANK WHERE 1-
EXCELLENT, 2-GOOD, 3 ABOVE-AVERAGE, 4-AVERAGE, 5-BELOW
AVERAGE

Access Comminication
Confiden Courtesy Reliability Security Response Waiting

tiality evenness time

Excellent

24 6 22 6 15 17 14 3

GOOD 6 12 22 10 8 7 8 2

AGE 3 14 4 12 6 6 6 8
AVER
AGE 2 2 2 2 4 4 4 17
BELO
W
AVER
AGE 0 1 0 5 2 1 3 5

48
9. WHICH FACILITY SATISFIES YOU MOST

NO. OF
FACILITY PERSONS
ATM 10
Loan 4
Early cheque clearance 8
Preparation of drafts 2
Interest package 3
Net banking 5
Phone banking 3

49
10. IF YOU ARE PROVIDED WITH BETTER SERVICES BY OPTIONAL
BANK. WOULD YOU LIKE TO MOVE TO OTHER BANK

YES 9
NO 26

11. OVERALL SATISFACTION OF THE CUSTOMERS WITH THE

PERFORMANCE OF HDFC BANK

NO. OF
SATISFCTION PERSONS
EXCELLENT 7
GOOD 12
SATISFACTORY 8
AVERAGE 5
BELOW AVERAGE 3

SATISFACTION LEVEL

50
 Suggestions and
Recommendations

51
 1. Both the customers from HDFC BANK and HDFC bank have suggested that the
bank should open one of its branch in industrial area like focal point.
2. One of the most common suggestion was to lower down the minimum balance
required in the saving s account.
3. Staff should be more co-operative to the customers.
4. Customers were not fully aware of the services and the various charges which
they have to pay. Therefore Banks should try to give some more information to its
existing customers

Assumptions
The project report is based on the preference of the customers and the level of satisfaction
towards HDFC BANK and HDFC bank. During project we come to know that both the
banks are highly preferred by the customers but their preference is different up to some
extend towards the service of these banks. Following are the assumptions of the project.

1. Range of the survey is limited to Patiala city. It may not hold the same result in
the different city.
2. The sample size for the survey is restricted up to 70. Out of Which 35
questionnaire was filled by the customers of HDFC BANK and 35 was filled by
customers of HDFC bank.
3. Survey is done in a very short period of time. This may have impact on the final
result of the survey.

52
QUESTIONNAIRE

53
 CUSTOMER PREFERENCE TOWARDS HDFC BANK

1. Name____________________

2. Gender

Male Female
3. Age
Less than 25 25-35
35-45 45-55
55-above
4. Occupation

Service Business
Professional Student
Housewife
5. Income

Nil Less than 50,000

50,000 to 1,50,000 1,50,000 to 3,00,000
3,00,000 to 5,00,000 5,00,000 and above

6. Bank you are dealing with

HDFC SBI any other

7. What was the single most important reason that you chose this particular Bank

I have a traditional bank account with the same bank the

brand name of the bank
The excellent service offered by this bank
ATM service
Net banking facility
Location advantage
Any other please specify_______________________________________

8. Which account facility you are availing in the Bank

Savings account Current account

Fixed deposit NRI account

9. Since how many years you are dealing with this Bank

Less than 1 year 1 to 2 years

54
 3 to 5 years More than 5 years

10. What is the main reason that you typically visit your bank branch

(please choose the single most important reason)

To make a deposit
To get advice for investment options To
inquire about a balance
To withdraw cash Any
other please
specify______________________________________________

11. How would you rate the following banking service quality on scale of 1-5 provided
by bank where 1-excellent, 2-good, 3 above-average, 4-average, 5-below average

Access Communication
Confidentiality Courtesy
Reliability Security
Responsiveness Waiting time

12. Which facility satisfies you most?

ATM Interest package

Loan Net banking
Early cheque clearance Phone banking
Preparation of drafts

13. If you are provided with better services by optional bank. Would you like to move
to other bank?

Yes No

14. How would you rank the overall service

Excellent Good
Satisfactory Average below Average

Suggestions

If any______________________________________________
signature

Thank you very much for your time, cooperation & patient

55
56
WEBSITE USED

www.hdfcindia.com
http://www.en.wikipedia.org/wiki/Standard_Chartered_Bank
http://www.finance.indiamart.com/investment_in_india/standard_chartered_bank.

BOOKS FOLLOWED

Research methodology by C.R. Kothari

NEWS PAPERS

Business standard

Economic Times

57
THANK YOU

58